Yunus Rushes To Ink ‘Secret’ US Trade Deal Ahead Of Bangladesh Polls, Leaves Exporters In Worry

Last Updated:February 06, 2026, 07:44 IST

The deal is being pushed by the unelected interim administration led by Muhammad Yunus, raising sharp questions about democratic mandate and transparency.

Dhaka is set to sign a Bangladesh-US trade agreement on February 9, just three days before the country’s national election, with officially no information disclosed about its contents, triggering widespread concern among exporters, economists and political observers.

The deal is being pushed by the unelected interim administration led by Muhammad Yunus, raising sharp questions about democratic mandate and transparency.

Critics argue that an outgoing, non-elected government is attempting to lock Bangladesh into a long-term economic commitment without public debate or parliamentary scrutiny.

Anxiety has been fuelled further by reports that the Yunus administration signed a non-disclosure agreement with Washington in 2025, effectively barring any public examination of the negotiations.

The secrecy surrounding the agreement, coupled with its timing on the eve of elections scheduled for February 12, has intensified fears about its legality and long-term implications.

The rush to conclude the agreement has become a central point of contention. While the interim government is expected to step aside after the polls, it is moving ahead with a trade deal that could shape Bangladesh’s export landscape for years to come.

Economist and public intellectual Anu Muhammad openly questioned the urgency in a social media post, asking why major decisions, ranging from port leasing to arms imports and trade agreements with the US, were being fast-tracked just days before the election.

He alleged that the process was “non-transparent, illogical and irregular," and claimed that foreign lobbyists had been embedded within the administration to push the agreements through.

Exporters Voice Deep Unease

The strongest resistance has emerged from Bangladesh’s export sector, particularly the ready-made garments industry, which dominates trade with the United States.

Bangladesh exports between $7 billion and $8.4 billion worth of apparel and textiles to the US annually, with garments accounting for nearly 96 per cent of that figure. The sector directly employs around 4-5 million people, the majority of them women.

With US tariffs on Indian exports reduced to 18 per cent while Bangladesh currently faces a 20 per cent rate, exporters fear that the secretive deal could further erode their competitiveness rather than improve it.

Bangladesh Garment Manufacturers and Exporters Association senior vice president Inamul Haque Khan said the absence of consultation was alarming.

While there had been expectations that tariff rates could drop to 15 percent, he expressed surprise at the timing of the signing and said such a consequential agreement should have been concluded only after the election.

Economists warn that the interim setup may be constraining the policy space of the next elected government.

Debapriya Bhattacharya, distinguished fellow at the Centre for Policy Dialogue, said signing the agreement post-election would have allowed political parties to debate its merits and implications, adding that there was a real risk of tying the hands of the incoming administration.

Dhaka Chamber of Commerce and Industry president Taskeen Ahmed said the lack of clarity made it impossible to assess who stands to gain or lose.

He noted growing apprehension within the business community over potential conditions attached to the agreement and their impact on specific sectors.

The controversy has also revived debate over the circumstances under which the Yunus administration assumed office following the removal of Sheikh Hasina in 2024.

Persistent allegations suggest Yunus came to power with backing from Islamist groups such as Jamaat-e-Islami, alongside tacit Western support, though little has been officially confirmed.

Bangladesh’s trade ties with the US have already been volatile. After Washington imposed a steep 37 percent tariff in April 2025, rates were gradually reduced to 20 percent by August.

Last week, Commerce Secretary Mahbubur Rahman confirmed that February 9 had been finalised as the signing date for the agreement, but offered no details on its substance.

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